What are the characteristics and options for custody of digital assets?

The characteristics and options for custody of digital assets: There are characteristics of digital assets from both the digital nature of them to inherent security features which means there are various custody options available to users.

What are custody assets?

Custody Assets means your securities or other assets in respect of which we (a) act as a custodian; or (b) arrange for a third party to act as a custodian; Custody Assets has the meaning ascribed thereto in clause 2.2; “ Instructions ” has the meaning ascribed thereto in clause 3.2;

What is an UCITS custodial asset?

(a) a UCITS custodial asset held by a depositary in line with COLL 6.6B.18R (Depositary functions: safekeeping of financial instruments); or (b) any other asset of a UCITS for which a depositary exercises safe-keeping functions in line with COLL 6.6B.19R (Depositary functions: safekeeping of other assets).

How do custodians store assets?

The owners are issued cryptographic keys that prove their ownership of the assets, to be used when transferring them between owners or using them to buy things. So, technically, custodians don’t store the assets themselves; they store the owners’ cryptographic keys. Those keys must be protected to ensure the owner’s assets are safe.